On Feb. 22, the foundation-laying ceremony for the Lu'an Coal-based Synthetic Oil Plant, a major component of China's first coal-based synthetic oil demonstration project, was held at Tunliu Coal Mine of the Lu'an Coal Mine Group in north China's Shanxi Province, marking the start of the first such production line in this country. Secretary of the CPC Shanxi Provincial Committee ZHAO Baoshun, Governor of Shanxi Province YU Youjun and CAS Vice President LI Jinhai are among the party and government officials to witness historical moment.

    The key technology for this demonstration project is developed by the CAS Institute of Coal Chemistry in Shanxi. It will produce diesel oil, naphtha, LPG and a small amount of blended ethanol fuel. A demonstration facility that could turn out 160,000 tons of such products per year will be completed in two to three years, followed by a large-scale industrialization of the technology with a capacity of up to 5.2 million ton per year during the years from 2008 to 2015.